Rich and Responsible: Is ESG a Luxury Good?
7 May 2024
15:00 -16:15
Times are shown in local time.
Open to: All
Room W4.05 (Cambridge Judge Business School)
Trumpington St
Cambridge
CB2 1AG
United Kingdom
Join our Finance seminar, in collaboration with the Cambridge Corporate Governance Network
Speaker: Dr Fatima Zahra Filali Adib, Copenhagen Business School
About the seminar topic
We study whether investors perceive responsible investments (i.e., investments in assets with environmental or social benefits) as a luxury good. We exploit windfall wealth due to inheritances from parental deaths to obtain plausibly exogenous variation in wealth. We show that windfall wealth increases likelihood of holding responsible mutual funds and green stocks.
Our findings indicate that both supply factors (e.g., bank advice) and demand factors (e.g., preferences) play a role in shaping allocations to responsible investments. Notably, inheritors with a history of charitable donations exhibit a stronger response, which emphasises the influence of a warm glow effect on portfolio formation.
Speaker bio
I am an Assistant Professor of Finance at Copenhagen Business School. My research interests are predominantly in empirical corporate finance and household finance. I am interested in understanding how firms’ corporate governance policies are affected by investors preferences (e.g. ESG) and by their investors’ base (e.g. institutional shareholders).
An extension of this research stream landed me on trying to understand the drivers behind said investors’ preferences. I do so by studying how retail investors make their portfolio decisions and the different channels that affect their investment choices.
Register
No registration required. If you have any questions about this seminar, please email Emily Brown.